This is another epic year for the North Texas industrial real estate market, with almost 62 million square feet in the construction pipeline, according to JLL’s fourth-quarter report. Developers delivered 46 million square feet in the Dallas-Fort Worth area in 2022, putting vacancy at 6.7 percent, the Dallas Business Journal reported. With 107 million feet of new industrial space coming online in two years, the market is starting to level off, JLL’s Randy Touchstone told the outlet.
“Development starts are going to slow significantly, and we’ve already seen that,” he said. “Debt is hard to come by, and deals just don’t pencil. Construction costs are still kind of at peak levels, even though a few things that it takes to build a building have gotten cheaper.”
Here’s what else went down in Texas industrial real estate this week.
Greystar Real Estate Partners recently completed its first logistics project in Houston, the Houston Business Journal reported. The South Carolina-based firm delivered the Mill, at 16333 Tomball Parkway, a 166,000-square-foot facility with 3,000 square feet of office that sits on 11.8 acres. Greystar is known for its multifamily business and got into the industrial game in 2020. It bought this property in 2021 and started construction last May, the outlet reported.
Local firm Clay Development & Construction plans to develop a 768,000-square-foot industrial building on Discovery Hills Parkway in Brookshire, a suburb west of Houston on Interstate 10. The project is expected to cost a little over $38 million, or just under $50 per square foot, according to a filing with the Texas Department of Licensing and Regulation. Construction could begin at the end of May.
A Kentucky-based heavy truck parts manufacturer, Westport Axle, leased 115,000 square feet at the Selma Industrial Park in San Antonio recently, bringing the facility at 17654 Ben E. Keith Way to 100 percent occupancy, the San Antonio Business Journal reports.
Vault Partners recently hired Tyler Maner and Woody Hillyer of Stream Realty Partners to lease a distribution center that is under construction in south Houston. Vault Distribution Center, at 13606 Furman Road, comprises just under 183,000 square feet and can be divided into 40,000-square-foot leases, according to a media release. It is expected to be delivered at the end of this year.
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